The Role of Power of Attorney in Real Estate Transactions in Los Angeles and Beverly Hills, CA
The Role of Power of Attorney in Real Estate Transactions in Los Angeles and Beverly Hills, CA | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert.
In the bustling real estate markets of Los Angeles and Beverly Hills, a Power of Attorney (POA) can be an invaluable tool for facilitating transactions, especially when principals cannot be physically present for closings. This is particularly relevant in these regions where high-value transactions and international clients are common. Here are four crucial points every real estate professional in Los Angeles and Beverly Hills should know about using a POA:
- Recording the Original POA: In Los Angeles and Beverly Hills, as with most areas, the original POA must be recorded in the county where the property is located. This means ensuring the POA has the principal's original, notarized signature. Given the timeline for preparing and returning the POA, professionals should allow sufficient lead time, especially for high-profile or luxury properties typical of these areas.
- Time Considerations for International Principals: In cosmopolitan markets like Los Angeles and Beverly Hills, principals are often international, necessitating extra time for notarization and document return. Notary services might be conducted at U.S. embassies or by military personnel overseas. For non-U.S. options, consider the need for local notaries and potential document translation.
- Selecting the Appropriate POA: It’s critical to ensure the POA grants the correct powers, particularly in complex transactions common in Los Angeles and Beverly Hills. For instance, a POA limiting new debt won't suffice for signing loan documents. Understanding the nuances of each transaction and ensuring the POA’s powers align is essential.
- Confirming POA is the Correct Document: In cases where a corporation, LLC, or trust is involved – a frequent occurrence in the high-end Los Angeles and Beverly Hills markets – a POA might not be appropriate. Corporate entities may require a board resolution, and trusts might need an Appointment of Successor Trustee, especially if the trustee is unavailable or deceased.
Understanding the use and limitations of a POA is crucial for smooth real estate transactions in the sophisticated markets of Los Angeles and Beverly Hills. Whether dealing with local celebrities, business moguls, or international clients, real estate professionals need to navigate these legalities with expertise and foresight.